Press Information Bureau
Government of India
Ministry of Petroleum & Natural Gas
01-August-2016 17:54 IST
Initiatives taken to take forward Biodiesel programme

The Minister of State (I/C) for Petroleum & Natural Gas Shri Dharmendra Pradhan informed the Lok Sabha in a written reply today that the Ministry of Petroleum and Natural Gas had announced a Bio-diesel Purchase Policy in October 2005, under which, Oil Marketing Companies (OMCs) would purchase bio-diesel at a uniform price as may be decided by the OMCs from time to time, for blending with High Speed Diesel (HSD) to the extent of 5% at identified 20 purchase centres across the country.

However, OMCs could not procure biodiesel upto August, 2015 as biodiesel producers were not coming forward to supply their biodiesel at the prices decided by OMCs from time to time.

On 10.8.2015, the Government allowed the sale of Bio-diesel (B100) by private manufacturers to bulk consumers like Railways, State Transport Corporations and other bulk consumers. Also, retailing of bio-diesel blended diesel by Public Sector Oil Marketing Companies (OMCs) has started on the same day.

As a result, the biodiesel procurement by Public Sector OMCs has started. As on 1.7.2016, 1.32 crore litre Biodiesel (B100) has been procured by Public Sector OMCs. During the current Financial Year also, OMCs have finalised a quantity of 4.01 crore litres of biodiesel for the period of April – September, 2016.

Besides, Ministry of Petroleum and Natural Gas has taken following recent initiatives to take forward the biodiesel programme :

(i) A Steering Committee has been constituted in the Ministry to take forward the bio-fuel programme of the country.

(ii) A separate Biofuel Cell has been constituted in Ministry of Petroleum and Natural Gas for dedicated focus on Biofuels. The Cell, besides being a technical repository on Biofuels, also monitors biodiesel procurement and blending by OMCs.

(iii) Bureau of Indian Standards (BIS) has revised the standalone Biodiesel (B100) specification and also developed specification for biodiesel blend from B6- B20.